Overview of Cloud-Based Accounting Software – Xero
People have used accounting tools for centuries, from the traditional ways to written ledgers, machines, and calculators. Businesses begin to rely on spreadsheets to keep track of their accounts and finances. As a company grows, the use of spreadsheets becomes more complicated. Businesses need to invest in modern cloud accounting software. Cloud accounting software is unlike the traditional accounting software which need to self-install in certain desktop. Instead it is hosted on remote highly secured servers. Data is sent to the cloud storage of the cloud accounting software, which it helps to keep and secure the data from loss, damage and etc.
One of the famous cloud accounting software in Malaysia is Xero. Xero is originated from New Zealand/Australia and currently serving more than 2 million business worldwide. Xero accounting software is a cloud based program designed that gives business owners and advisers rapid access to real-time financial data with an internet at any time, from any location, on any device. Xero provides tools for managing the business daily needs such as invoicing, sales, inventory, expenses, financial report, bank reconciliation, purchasing and more.
The business does not have to install and maintain software on individual desktop PCs when using Xero but all you need is internet connection. Xero also allows staff from other departments, remote or branch to have access on the same data and version of the software. These shows that the Xero support multiple users at the same time, from any device rather than the traditional software that install on the computer was very much driven in cost terms by how many people wanted to access it at once.
The Key Features of Xero
- Ease of Use
Xero is ideal for those who prefer visual information. Your customized accounts dashboard will greet you as soon as you log in to Xero. This gives you real-time access to your bank balances, invoices, bills, and expense claims. You can easily add new transactions, and the interactive graphs will show you exactly where your money is going in and out. A watchlist tool is available if you wish to keep track of specific accounts. - Easy invoicing
Customize basic invoice designs with your logo and contact information or make your own custom invoice then keep track of everything in one location. Customers can pay with credit/debit cards or even PayPal, and you can set up an automatic payment reminder for when the invoice is past due on your selected date.
There is a repeating invoicing option, so if you send out invoices monthly or quarterly, this can be entirely automated. After you’ve sent the bills, you can simply manage your debtors and send statements. If you’re frequently away from the office, the program can replicate invoices, send bulk invoices, and even save common invoicing data to speed up the process and you can do it all from anywhere and any devices. - Bank Reconciliations
Xero imports bank and credit card transactions automatically when you connect your bank accounts to the system (which also know as “bank feed”). As you use this function, the software’s smart reconciliation tool matches transactions and learns how to predict matches. You can also configure it to reconcile transactions in bulk based on rules, removing the need to categorize transactions individually. For example, you can set if a bank transaction has certain attribute- Handling charges, the amount automatically recorded in bank charges expense account. - Reporting
With a range of reporting options, such as a general ledger, aged receivables and payables, profit and loss, and a balance sheet, Xero makes financial reports a joy. The reports are fully customizable, allowing you to track the information that matters most to you. Budgeting tools are also included in the software. We often use this feature to help our clients to come up with useful financial information for better decision making. Such as segmental profit and loss, product or saleman sale analysis. - Purchase Ordering and Inventory Tracking
You can see how many of each item you have in stock while you produce quotations and invoices, and if you input more than that, a red popup box informs you. You can easily create and send purchase orders if you need to reorder items. The purchase order can subsequently be converted into payment bills or invoices for your customers. Furthermore, you can manage purchase order and supplier bill approval process entirely online where different users may be assigned a different role to create the purchase order and supplier bill to submit for approval. The owner or manager can review the document and approve remotely online. All user activities and history are recorded as trail. You can say goodbye to paper printing and signing on them. - Invoice processing and document storage
Last but not least, one of the features we love the most is the capabilities of Xero to process supplier bills and payments via different methods:
- Email to Xero – with a designated email address. You can just forward the supplier invoice or set a forwarding rule to forward the email to your Xero. The invoice will be captured and save in your Xero
- Hubdoc – Hubdoc is a powerful document processing and extraction tool where you can process invoices in bulk where it helps to extract the information from the invoices to fill up in Xero for you.
You can save much time from manual data entry and automate your invoice processing time with proper setup and leverage on Xero’s powerful smart technology. You also can have peace of mind when all supplier invoices are saved and stored in each bill created/account entry in your Xero which makes it very easy to retrieve and refer to anytime and anywhere. You can save tons of paper and also space to keep your files!
How Xero helps SMEs in managing their accounts
For a small or medium-sized enterprise that do not have a finance team, managing their accounts and finance can be challenging task. Some of the common mistakes are did not have proper cash flow, financial report, misplace invoice and more.
We believe that the key features of Xero cloud accounting software that we have given will assist a small or medium-sized enterprise properly managing their accounts. With minimal effort, Xero will expand your company accounting capabilities. Xero provide real-time information and amazing accessibility, ensuring that you are never caught off guard by your company’s financial health.
- Xero lowers the chances of making a mistake.
It might be tough for small business owners who are new to accounting to avoid making mistakes without proceeding at a glacial pace. Mistakes may cost the SMEs a loss because the company may make wrong decisions based on the faulty information.
Xero does all the heavy lifting for you, so you don’t have to worry about errors in your bookkeeping. Xero offers more accuracy and less chances for costly accounting errors through their tools such online invoicing, actual data collection, and automated workflows. - Xero allows easy collaboration with your advisory
With the cloud technology and easy accessibility, you can collaborate with your advisor anywhere and anytime, without being restricted by the location or travelling. We often help our clients to review their financials and provide up to date financial insights and information to them. So they can have latest financial information on hand and making sure proper accounts and records are kept to meet the local regulatory SSM and Inland Revenue Board (IRB) compliance requirements. - Xero provides financial data at glance
Xero is capable of being much more than just online accounting software. It may serve as the financial hub for your whole company, you can see what money is coming in and going out of your business at any moment thanks to real-time data and straightforward reporting. This provides you with a better knowledge of your financial situation.
With a different option of financial report and customizable report allow the SMEs business in Malaysia to made reports with the right KPIs for their business. This will help to track their business performance and the financial health of the business. - Xero helps with easy integration
Xero is an excellent cloud accounting software, and it can connect with a wide range of other programs and software. Xero offers up to 700 applications of integration for small or medium enterprise businesses which will help to ease the operation of the SMEs. The common integration that business will use are POS systems, payroll and human resource, CRM software and e-commerce platforms.
